Major banks in Vietnam are still expecting to report growth in the first quarter and for the rest of 2020 despite the disruptions caused by the coronavirus (COVID-19) pandemic.
According to estimates from Saigon Securities Incorporation (SSI)’s research division, Vietnam International Bank (VIB) was expected to lead in terms of pre-tax profit growth in the first quarter with a 30 per cent on-year increase to surpass VND1 trillion (US$43.48 million).
Meanwhile, with credit growth of nearly 6 per cent in the first quarter and earnings from its bond investment portfolio in the first two months of this year, VPBank is expected to post double-digit profit growth in the first quarter.
SSI analysts also estimated TPBank’s pre-tax profit in the first quarter hit VND1 trillion, up 17.3 per cent year-on-year, while the figure for ACB was VND1.8 trillion, up 5 per cent on-year.
Pre-tax profit at State-owned Vietcombank was forecast to reach VND6.1 trillion, up 3 per cent on-year.
Though official numbers have yet to be published, some banks have already announced their business plans for 2020.
Pre-tax profit at State-owned Vietcombank was forecast to reach VND6.1 trillion, up 3 per cent on-year.
In an annual report released recently, SeABank set a pre-tax profit target of more than VND1.5 trillion, up by 8.3 per cent compared to the previous year. The target is fairly modest as SeABank’s pre-tax profit in 2019 increased by more than two times, reaching VND1.39 trillion.
For MSB, with credit growth of 20 per cent and mobilization growth of 10 per cent set for 2020, the bank expects a pre-tax profit of VND1.44 trillion, up by 12 per cent. MSB also targets an asset increase of VND170 trillion, up by 8 per cent, while the bad debt ratio will be held below 3 per cent.
At the annual general meeting held late last month, Kienlongbank’s shareholders approved a business plan with a profit target of VND750 billion, 8.7 times higher than 2019, and credit and mobilization growth targets of 13 per cent and 16 per cent, respectively.
Kienlongbank has a history of setting breakthrough growth even when most banks expect to record a decrease in accrued interest receivables than in previous years after completing the settlement of secured collateral. The bank also has the advantage of not being required to set a provision for bad debts at the Vietnam Asset Management Company (VAMC).
However, Kienlongbank also said its plan was based on the best COVID-19 scenario, and could be adjusted if the prolonged epidemic negatively affected its business operations.
— VNS